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Competitive Advantage Case Study: Intel Corporation Essay

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Introduction
Intel Corporation is the world’s largest semiconductor chipmaker. Founded in 1968 by Gordon Moore, Robert Noyce, Arthur Rock, and Max Palevsky, the company makes integrated circuits, flash memory, embedded processors, motherboard chipsets, and other communications- and computing-related devices. Due to increased competition from Japanese semiconductor manufacturers in the early 80’s, Intel decided to focus on microprocessors.
Intel experienced tremendous growth by the late 80’s, when Intel became the primary supplier of microprocessors for IBM and then the PC industry. In addition to its excellent positioning, Intel launched its “Intel Inside” marketing campaign that increased brand loyalty. Consequently, the campaign, …show more content…

The new campaign also transitioned Intel’s marketing efforts from traditional to digital marketing. Today, at least 80% of Macs and PCs are shipped with Intel processors globally garnering the lead market share in the microprocessor industry.
How did Intel leverage its competitive advantage to regain its market share? This case study will analyze Intel Corporation’s competitive advantage, which includes economies of scale, customer captivity, cost, and government protection. These competitive advantages will be complemented with Intel’s competitive analysis, in order to understand and realize Intel’s and the microprocessor industry’s whole competitive landscape.
Intel’s competitive analysis
Value Chain
Intel Corporation has an interesting value chain. It has numerous suppliers and even bigger number of customers. The company’s value chain is shown in the diagram below. Intel Corporation leverages its technology to stay high up in the value chain. Intel has leveraged its positioning to become the most widely-used microprocessor in the PC market. The company has a reputation of bringing the fastest and most innovative product in the market and has become the go-to processor for most computer systems available. Manufacturers like Dell, Gateway, and Apple, use Intel’s processors for their products. These systems are then distributed directly to companies and consumers, or through a retailer like Best Buy or Fry’s.
SWOT
Intel is dominating the semiconductors industry,

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